Smaller Advertisers Are Now Using Demand Side Platforms For A Better Ad ROI
DSPs help them advertise with more versatility, and at lower cost, than previous advertising platforms such as PPC and organic traffic methods (SEO). DSPs are capable of so much reach that are beyond the usual PPC (pay per click) promo model via Google Adwords, Bing and other search engines. DSPs offer a larger variety of advertising models, ranging from retargeting, remarketing, geo-targeting, contextual targeting, site targeting, audience targeting and programmatic buying (auto-optimization).
Advertisers who use DSPs keep thinking of new, creative ways to harness the versatility of their chosen Demand Side Platform. As DSPs become more popular, new advertising models will be created by the creative people who use them.
Remarketing And Retargeting
The hottest segment in DSP traffic is advertising using retargeting and remarketing.
For those unfamiliar with these terms, the concept is simple: it’s basically setting a cookie in your visitor’s browser after they visit your website. In some cases, it’s possible to retarget visitors even after they have opened your email newsletter (remarketing options depend on what your particular DSP is capable of). When you remarket visitors, it means that your ads follow them and extend your marketing for a long time after they have left your website.
As long as there is a live cookie in the visitor’s browser, your ad will appear within ad modules at other websites they visit. Your visitor could even see your ads for your products at a competitor’s website.
In the past, mostly big advertisers leveraging large ad budgets demanded access to Demand Side Platforms because the cost is calculated on number of impressions (CPM, cost per thousand of impressions).
The CPM advertising model is cheaper than PPC once the traffic is tested and optimized. CPM advertising used to mean that big bucks had to be spent for testing, optimization and impressions by the hundreds of thousands or millions. The ad budget would be hundreds of thousands of dollars per month, beyond the budgets of small advertisers.
Things have changed over the past few years, and several DSP retailers have democratized remarketing and retargeting for the little guy. The new DSPs cater to small companies with large advertising needs by selling volume impressions that have been retargeted and remarketed. This means it’s now possible for small businesses to use a high volume DSP platform at prices enjoyed by the big advertisers. It means they can finally purchase impressions in at volume prices that were limited to those with large ad budgets.
Many small- to medium-sized businesses have hopped on board, and they’re running ads using a DSP for a better ROI on ad dollars spent.
Remarketing Customers Who Bought And/Or Visited
The DSP business model makes even more sense for advertisers when you consider the status of the visitor who was cookied: they most likely visited the cookieing website because they had an interest in what was being sold. This method of pre-qualifying visitors for remarketing down the road has shown to improve the effectiveness of a company’s advertising budget.
DSPs also use the power of conversion tracking and retargeting to build a profile of buyers for a company’s products after the visitor has made a purchase or just clicked-through at the site. This lets the advertiser know immediately if a visitor is a mere “tire-kicker,” made a purchase earlier, or came back to their site after clicking through their ad at a different website.
Remarketing & Your Visitors’ Privacy
For privacy’s sake, Demand Side Platform tracking doesn’t violate your website’s terms of service or your visitors’ privacy. It tracks info anonymously, and creates profiles based on visitor behavior – not their specific info. When using this kind of tracking, your terms of service should have a message that cookies are being placed and that information about visitor activity is being collected. This small action would cover you regarding your remarketing and retargeting activities.
The DSP Learning Curve
There is a learning curve when switching to a DSP after using conventional PPC and SEO advertising. Learning to harness the power of a DSP dashboard pays off, and knowing how to properly optimize the traffic, can yield great rewards for an advertiser. As an updated advertising platform, a Demand Side Platform account could help you if you have a small- or medium-sized business that would benefit from advertising that can target visitors and produce thousands and millions of impressions.